Senior JPMorgan Exec to Join Citadel

Bill King, the co-head of the bank's global securitized products, is the third defection in a week ahead of the expected closing of its deal for Bear Stearns.
Author:
Publish date:

Bill King, the co-head of

JPMorgan Chase's

(JPM) - Get Report

global securitized products, is leaving the bank to join influential Chicago hedge fund

Citadel Investment Group

.

At Citadel, King will be head of securitized products -- a newly created position -- with responsibilities for mortgage securities, asset-backed securities, collateralized debt obligations and related products. He is the third member of JPMorgan's 28-person investment bank management committee to resign in the last week, as the firm prepares to integrate

Bear Stearns

(BSC)

.

Securitized products are the complex investment vehicles that have soared in popularity in recent years, encouraging the excessive risk-taking that has caused the current turmoil in the market. Because these securities are out of favor, they offer interesting investment opportunities for those who can understand them. King could not immediately be reached for comment.

The investment banking committee, reorganized in anticipation of JPMorgan's acquisition of Bear was unveiled in an April 4 memo from the firm's investment banking co-heads Steve Black and Bill Winters.

Jeff Mayer and Craig Overlander, vice chairmen at JPMorgan and former co-heads of fixed income at Bear, handed in their resignations a few days ago, according to a May 20 memo from Black and Winters. Shareholders are expected to approve the proposed takeover Wednesday.

On the new committee, King, a JPMorgan executive, was sharing management duties with Mike Nierenberg, who is joining from Bear Stearns. Nierenberg will now have sole oversight of global securitized products at JPMorgan.